New research indicates that the heavy indebtedness of South Africans is likely to continue for the foreseeable future.
The 2021 Old Mutual Savings and Investment Monitor found that around 43 % of the 15 000 participants surveyed had taken out personal loans this year, while 54 % dipped into their savings to make ends meet.
Many South Africans are feeling the financial squeeze amid slow economic growth, minimum wage increases, and rising costs.
The research found that consumers had fallen behind on store cards and credit card payments, as well as rent and home loan payments.
“I think we all know that there is an urgent need for improvement in the savings culture in South Africa and it’s one of the major socio-economic challenges facing our society. COVID-19 has only heightened the urgency of this national objective. We continue to experience a lot of volatility in the economy with detrimental effects on people’s personal finances,” says Old Mutual CEO Iain Williamson.
